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Product Costing Basics

subhadeep_das
Contributor

Dear All,

I would like to know from where do we start the product costing steps in SAP (data flow between FI-PP-CO ?). As a basic concept I do understand fixed cost,variable cost and the per unit cost of product but I am not able to understand how will I start configuring the same.Also where are we going to show th inventories of raw material,wip and finished goods ?

Kindly help me with some knowledge on this topic.

thanks in advance

besst regds

Subha

Accepted Solutions (1)

Accepted Solutions (1)

george_koshy3
Explorer

Dear All,

Hopes that the following flow charts will help you to understand the COPC better.

former_member182465
Active Participant
0 Kudos

Excellent Work George koshy. This is one of the finest help in a discussion.

george_koshy3
Explorer
0 Kudos

Hi Abhilash,

Thanks for the compliments..

thanks & regards,

George Koshy

mvikasfico
Explorer
0 Kudos

This message was moderated.

Former Member
0 Kudos

Thanks you for contribute a great help

subhadeep_das
Contributor
0 Kudos

Hi,

This is very good.

best regds

Subha

Former Member
0 Kudos

well explained

Answers (2)

Answers (2)

Former Member
0 Kudos

Please go through the below links as a first step.

Former Member
0 Kudos

Hi Subha,

Product cost contains two areas for settings: 1. Production cost planning and 2. Cost object Controlling

1. Under Product cost planning: Do configuration for standard cost estimate. Here, you can do settings for OH calculations through costing sheet or template allocation under "Basic settings for material costing". Also, configure Costing variant settings under "Material Cost estimate with qty structure"

2. Cost Object Controlling settings use to configure Plan cost, Actual cost and period end closing (WIP, Variance and Settlement).

Regarding data flow from FI to PC: create all Expenditure GLs as cost element and do cost element and activity planning through KP06,  KP26 and run KSPI for plan activity price calculation.

Work Center (PP) is the integration between CO and PP. In work center, we assign relevant cost center (before assign it do cost center planning against CC). In this way, CO values will hit product costing.

Raw materials will be created by MM and for product costing maintain the same in BOM (PP work). Also, activities will be tracked through Routing (PP).

BR, Srinivas Salpala

subhadeep_das
Contributor
0 Kudos

Hello,

thank you for sharing, also kindly help me know, after configuring these where will be able to view the end result ? is there any report ?

best regds

Subha

Former Member
0 Kudos

Hi Subha,

As srinivas said, once you configured every thing, you can see the result for std cost of the product (ck11N), which comes under product cost planning.

You can see the plan and actual values in the production order, it comes under cost object controlling.

Thx

Ramesh

Former Member

Hi,

After configuring Product cost controlling, run CK11N for standard cost estimate, marking and release the same in CK24. Later, production process will be done from PP side. After Goods Receipt, as part of month end activities, do the below:

Calculate Actual Activity PriceKSII
Revaluation of production orderMFN1/CON2
Actual OH calculation KGI2/CO43
Change Wip Cut-off PeriodKKA0
WIP calculationKKA0
Variance CalculationKKSI
SettlementCO88

For Product cost report: check S-ALR_87013127 also find other reports under Information system tab in product costing.

BR, Srinivas Salpala

subhadeep_das
Contributor
0 Kudos

Hello All,

this is nice, many thanks for the answers i got from you.I have been going through few readables as well. I am not sure why, but I am not able to view the "Correct Answer" button to assign your much deserved points . ....I'll do it as soon as it becomes visible.

best regds

Subha

subhadeep_das
Contributor
0 Kudos

Hi,

check this below link.

http://www.slideshare.net/johnj777/how-to-set-up-cost-estimates

best regds

Subha